Question
In: Accounting
On November 1, Year 6, Bob the Builder purchases a cookie after having a dream in...
On November 1, Year 6, Bob the Builder purchases a cookie after having a dream in which a stranger gave him a giant fortune cookie. A week later, he finds out that he won $100,000. On December 1, Year 6, he cashes in his lottery ticket and forms a corporation called Fortune Cookie Inc. (FCI) with his lottery money. When FCI is formed, there is no other assets or liabilities. From the formation of FCI to the end of Year 11, the following transaction is the only transaction that has happened:
FCI issues an installment note on February 1, Year 7 (with a required yield of 6%) in exchange for the land that it purchases from Mr. Mac. Mr. Mac’s real estate agent had listed the land on the market for Box3A: 240,000 . The note calls for four equal blended payments of
Box3B: 60,000 that are to be made at February 1, Year 8, Year 9, Year 10, and Year 11. Note that FCI’s fiscal year end is December 31.
What is the amount of total current liabilities that should be reported on December 31, Year 8 Statement of Financial Position?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Bob the Builder purchased a land and building in Year 6 for $4,000,000. $1.6 million of...
Bob the Builder purchased a land and building in Year 6 for
$4,000,000. $1.6 million of the purchase price was allocated to the
land, and the balance to the building. At the time of the purchase
it was estimated that the building would have a useful life of 40
years but no residual value. In Year 18, Bob exchanged the land and
building for a piece of undeveloped land. The fair market value of
the assets given up was estimated...
Bob the Builder purchased a land and building in Year 6 for $4,000,000. $1.6 million of...
Bob the Builder purchased a land and building in Year 6 for
$4,000,000. $1.6 million of the purchase price was allocated to the
land, and the balance to the building. At the time of the purchase
it was estimated that the building would have a useful life of 40
years but no residual value.
In Year 18, Bob exchanged the land and building for a piece of
undeveloped land. The fair market value of the assets given up was
estimated...
CCC3 In November 2017, after having incorporated Cookie Creations Inc., Natalie begins operations. She has decided...
CCC3 In November 2017, after having incorporated Cookie
Creations Inc., Natalie begins operations. She has decided not to
pursue the offer to supply cookies to Biscuits. Instead, she will
focus on offering cooking classes. The following events occur.
1 Natalie purchases $5000 of Cookie Creations’ common stock.
2 Natalie teaches a group of elementary school students how to
make Santa Claus cookies. At the end of the class, Natalie leaves
an invoice for $3000- with the school principal. The principal...
Scoop is a main "crew" in Bob the Builder and it was purchased on January 1,...
Scoop is a main "crew" in Bob the Builder and it was purchased
on January 1, Year 10 for $100,000. [Please use "equipment" account
for "Scoop" in your journal entry.] Bob has been depreciating Scoop
on a straight-line basis over a 25-year period with zero residual
value. The appraisal carried out on December, Year 14 determined
that the fair value of scoop was $76，000 and the appraisal carried
out on December, Year 19 determined that the fair value of scoop...
Veekay Company was organized on November 1 of the previous year. After seven months of start-up...
Veekay Company was organized on November 1 of the previous year.
After seven months of start-up losses, management had expected to
earn a profit during June, the most recent month. Management was
disappointed, however, when the income statement for June also
showed a loss. June’s income statement follows.
Sales
$660,000
Less operating expenses
Selling and administrative
salaries
$ 39,000
Rent on
facilities
40,000
Purchases of raw materials
219,000
Insurance
10,000
Depreciation, sales
equipment
11,000
Utilities...
Veekay Company was organized on November 1 of the previous year. After seven months of start-up...
Veekay Company was organized on November 1 of the previous year.
After seven months of start-up losses, management had expected to
earn a profit during June, the most recent month. Management was
disappointed, however, when the income statement for June also
showed a loss. June’s income statement follows.
Sales
$660,000
Less operating expenses
Selling and administrative
salaries
$ 39,000
Rent on
facilities
40,000
Purchases of raw materials
219,000
Insurance
10,000
Depreciation, sales
equipment
11,000
Utilities...
Veekay Company was organized on November 1 of the previous year. After seven months of start-up...
Veekay Company was organized on November 1 of the previous year.
After seven months of start-up losses, management had expected to
earn a profit during June, the most recent month. Management was
disappointed, however, when the income statement for June also
showed a loss. June’s income statement follows:
VEEKAY COMPANY
Income Statement
For the Month Ended June 30
Sales
$
795,000
Less operating
expenses:
Selling
and administrative salaries
$
46,200
Rent on
facilities
58,000
Purchases of raw materials
263,000
Insurance...
Veekay Company was organized on November 1 of the previous year. After seven months of start-up...
Veekay Company was organized on November 1 of the previous year.
After seven months of start-up losses, management had expected to
earn a profit during June, the most recent month. Management was
disappointed, however, when the income statement for June also
showed a loss. June’s income statement follows:
VEEKAY COMPANY
Income Statement
For the Month Ended June 30
Sales
$
727,500
Less operating
expenses:
Selling
and administrative salaries
$
42,600
Rent on
facilities
49,000
Purchases of raw materials
236,000
Insurance...
On January 1 of the current year, Herkimer & Co. purchases, a group of 6 laptops...
On January 1 of the current year, Herkimer & Co. purchases,
a group of 6 laptops for its new hires. The laptops are purchased
for $2,200 each with a residual value of $400 each. Herkimer
expects the laptops to be used for 3 years. At the end of the
current year, Herkimer & Co. sells two laptops for $1,900
each.
Required:
Prepare the journal entries to record the purchase of the
laptops, the depreciation on the laptops, and the sale...
Bailer Company's record of transactions for the month of November was the following: Purchases: Nov 1....
Bailer Company's record of transactions for the month of
November was the following:
Purchases:
Nov 1.
525 @ $7.00
5
1400 @ $7.20
8
750 @ $7.35
14
1,250 @ $7.42
21
825 @ $7.55
29
610 @ $7.80
Total units sold : 5,360
Sales
Nov 6.
550 @ $10
9
1,320 @ $10
10
625 @ 12
22
1,100 @ 12
28
850 @ 13
#1 - Assume periodic inventory records are kept in units only.
Compute the inventory on...
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